It’s a competition for cash

Global equity funds sold out during Rolling Week May 6-11, as investors feared a slowdown in the economy and further monetary tightening from major central banks in anticipation of lack of liquidity in the market. As a reminder, the liquidity of the market decreases when a transaction becomes difficult to execute. The solution for investors may be to look for another segment with better liquidity. Today, the data show that the situation is tense in many segments.

Seeking liquidity

Therefore, for the fifth straight week of net selling, investors have sold their global equity funds. (Global Equity Fund) The value of the $ 10.53 billion, Only against Last week’s net sales were $ 1.65 billion. According to American financial services company Refinitiv Lipper (owned by Reuters since 1998).

Graph: Fund Flow: Equities (red), Bonds (green), World Money Markets.

L’MSCI index Global equities, which measure the performance of stock markets in developed economies diving That same week At 607.4, it is the lowest level for a year and a half. Inflationary pressure poses a difficult landing threat for the economy.

Raising interest rates to curb inflation “will not be painful,” Fed President Jerome Powell warns.

U.S. stock fund (US Equity Fund) Recorded for their part Net sales For the amount of $ 8.46 billionThe European Equity Fund has generated $ 4.33 billion. However, the investor was a net buyer of a $ 2.23 billion Asian fund.

From a sectoral perspective, funding Finance Recorded six consecutive weeks of releases, totaling $ 1.71 billion.Investors also withdrew about $ 700 million each Sector Mining When Industrial..

Global Equity Sector,

Chart: Fund Flow: Global Equity Funds by Sector.

Global fixed income funds also want liquidity

During this time Bond fund global Posted output $ 13.23 billionAlso, net sales for the 6th consecutive week.

The Global short-term to medium-term fixed income funds Recorded exit from $ 8.14 billion, It will be the biggest weekly release since at least June 2020, Government bond fund With net worth of $ 3.38 billion, we conducted a third weekly fundraiser.

Global bond fund flow

Chart: Global Bond Funds will flow during Rolling Week from May 6th to 11th.

Commodity: Peak gold sales

Investors also withdrew $ 1.73 billion from money market funds, recording net sales for the second straight week.

Data related to Commodity fund Weekly net sales of investment fundsgold With Precious metals It reached a maximum of $ 1.54 billion in two months. Gold prices were below the 200-day moving average.

Investors in emerging market funds are also looking for cash

Analysis of 24.155 Emerging market funding Investors show that they have sold $ 2.49 billion Equity fund And from $ 2.65 billion Bond fundMark the outflow for 5 consecutive weeks in these two segments.

Emerging Markets (EM)

Graph: Fund Flow-Emerging Market Equities and Bonds

(With Reuters. Charts and data sources: Refinitiv Lipper)